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DHFL soars on plan to raise up to Rs 7000 crore from banks

04 Aug 2016 Evaluate

Dewan Housing Finance Corporation (DHFL) is currently trading at Rs 231.30, up by 7.15 points or 3.19% from its previous closing of Rs 224.15 on the BSE.

The scrip opened at Rs. 226.00 and has touched a high and low of Rs. 233.40 and Rs. 223.75 respectively. So far 240251 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 268.00 on 10-Aug-2015 and a 52 week low of Rs. 140.55 on 12-Feb-2016.

Last one week high and low of the scrip stood at Rs. 233.40 and Rs. 220.25 respectively. The current market cap of the company is Rs. 6769.71 crore.

The promoters holding in the company stood at 34.89%, while Institutions and Non-Institutions held 34.79% and 30.32% respectively.

DHFL is reportedly planning to raise around Rs 7000 crore from banks including State Bank of India (SBI) in FY17 by transferring its existing loan receivables as the housing financier plans to cut down borrowing from banks. It has already raised Rs1,152 crore in the first quarter through such bilateral arrangement.

The process of transferring existing loans to banks is known as direct assignment of loans in financial parlance. This is a form of securitization of loans between two parties. It is a process of pooling in loan receivables and placing them with investors for raising funds. The process helps the originator of the loans - in this case Dewan Housing -- in unlocking capital and churning loan portfolios.

Dewan Housing Finance Corporation is among the oldest private sector Housing Finance Companies (HFC) in India.

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